New Retirement Plan Dollar Limits for 2012

COLA Increases for Dollar Limitations on Benefits and Contributions

 

The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code §415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 20, 2011 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2012. 

COLA Increases Table for prior years’.

Code
Section
2012 2011 2010
IRAs
IRA Contribution Limit – 219(b)(5)(A) 5,000 5,000 5,000
IRA Catch-Up Contributions – 219(b)(5)(B) 1,000 1,000 1,000
IRA AGI Deduction Phase-out Starting at
Joint Return 92,000 90,000 89,000
Single or Head of Household 58,000 56,000 56,000
SEP
SEP Minimum Compensation – 408(k)(2)(C) 550 550 550
SEP Maximum Compensation – 408(k)(3)(C) 250,000 245,000 245,000
SIMPLE Plans
SIMPLE Maximum Contributions – 408(p)(2)(E) 11,500 11,500 11,500
Catch-up Contributions – 414(v)(2)(B)(ii) 2,500 2,500 2,500
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation – 401(a)(17)/404(l) 250,000 245,000 245,000
Elective Deferrals – 402(g)(1) 17,000 16,500 16,500
Catch-up Contributions – 414(v)(2)(B)(i) 5,500 5,500 5,500
Defined Contribution Limits – 415(c)(1)(A) 50,000 49,000 49,000
ESOP Limits – 409(o)(1)(C) 1,015,000 

200,000

985,000 

195,000

985,000 

195,000

Other
HCE Threshold – 414(q)(1)(B) 115,000 110,000 110,000
Defined Benefit Limits – 415(b)(1)(A) 200,000 195,000 195,000
Key Employee – 416(i)(1)(A)(i) 165,000 160,000 160,000
457 Elective Deferrals - 457(e)(15) 17,000 16,500 16,500
Control Employee – 1.61-21(f)(5)(i) 100,000 95,000 95,000
Control Employee – 1.61-21(f)(5)(iii) 205,000 195,000 195,000
Taxable Wage Base 110,100 106,800 106,800